As the US 10-year Treasury yield rises into the 5% range, dollar/yen is struggling to establish a clear direction. Expectations of an FOMC rate hike are heightening market nervousness.
From 14 to 15 September, expectations spread that US long-term interest rates would rise into the 5% range. Dollar/yen briefly climbed to around ¥155.00 before closing near ¥154.36. While the market expects the Federal Reserve to raise rates in response to inflationary pressures, no decisive move has emerged ahead of the FOMC announcement.
Dollar/yen is struggling to establish a clear direction, and around ¥155.00 has shifted into upside resistance. Some market participants believe the low ¥153 range could provide support for now. The market trend could move again depending on the FOMC outcome.
In the stock, bond and commodity markets on Monday, 14 September, the Nikkei 225 stood at 63492.99, NY crude oil at 101.39 and NY gold at 4351.90. The US 10-year Treasury yield remained around 5%, and dollar strength and yen weakness were seen temporarily before the trading range narrowed soon afterward.
Key indicators and events on Monday, 14 September included movements in the US 10-year Treasury yield, developments related to an energy ceasefire between Ukraine and Russia, UK and European indicators, and indicators related to the Federal Reserve Bank of New York.
To assess today’s and upcoming market trends, attention should be paid to the FOMC announcement, the accompanying update to the interest-rate outlook, and movements in US long-term interest rates.